posted at 2/18/2011 12:19 AM EST
In Response to Re: Mediation
[QUOTE]Sorry Stommmper, the Rookie salary cap and the 18 game season are secondary issues. If they were the only issues then a deal would probably get done tomorrow. The real issue is that the owners want the players to give back 1 billion dollars in revenue. Quick overview: the NFL earns $9 billion. 1 billions goes to the owners straight off the top. That money is supposedly used for operating expenses; stadium upkeep, litigation, etc... The remaining 8 billion is split 60 / 40, players getting 60%, owners getting the other 40%. That means the players get 4.8 billion while the owners get 3.2 billion plus the 1 billion off the top, or 4.2 billion. Basically, the owners want 2 billion of the top for operating expenses.
Posted by ZachRudy[/QUOTE]
The owners want 2 billion off the top, AND a 50/50 split, AND two extra games of work for it.
That ends up with 3.5 billion for the players and 5.5 billion for the owners.
It is outrageous -- especially considering the healty financials of the league.
As far 60/40 being lucrative, the owners in this business more than any other are just glorified middle men, skimming off the top. Nearly 100% of the revenue is generated from the players, as they don't have any real raw materials they work on that represents an ongoing cost.
If you are, for instance, building something like a car or a house, part of the revenue (supposedly) comes from the resale of the steel or lumber that someone pourchase for you to work on, therefore there is a second part of the equation. For the most part, the owners really only paid for the rights to a name and logo,like "Texans" or "Chargers."
They revenue can be split that way because it is incredibly difficult for the owners to explain what part they have generated, especially when an ostensibly ownerless or "state owned" team like the Packers keeps winning and making money without the added "benefit" of someone cashing in on the rights to their logo.